Brugler report

Cotton futures are trading 12 to 16 points lower this morning ahead of the monthly USDA Crop Production and WASDE reports. The March 17 contract was up 37 points as it tried to close the expiration gap left by December. USDA export sales of upland cotton at 405,200 RB were more than 5x the same week a year ago. Vietnam was the largest buyer. Shipments were the largest reported for this week since 2012! Cumulative commitments as of 12/1 tally 7.259 MB and the USDA forecast for the year was 12.0 MB in the November report. The AWP in effect through next Thursday is 60.22, down from 60.66 last week but still well above LDP territory. The International Cotton Council (ICAC) is expecting mill use to be stable in 2016/17 for the big three consumers, i.e. China, India and Pakistan.